Close without the Stress28 May 2024

Detailed Overview of the Insurance, Escrow, and Closing Process for a New Home

Title Insurance

Purpose: Title insurance protects against any issues with the title of the property that may arise after the purchase, such as undiscovered liens, disputes over property boundaries, or fraudulent claims to ownership.


  1. Owner's Title Insurance: Protects the buyer's interest in the property.
  2. Lender's Title Insurance: Protects the lender’s interest in the property.


  1. Title Search: A thorough search of public records to verify the seller's legal ownership and identify any issues that could affect the buyer.
  2. Title Examination: Examination of documents found in the title search to confirm there are no issues.
  3. Issue Resolution: If any issues are found, they must be resolved before the transaction can proceed.
  4. Issuance of Policy: Once cleared, the title insurance policies are issued to both the owner and the lender.


Purpose: Escrow is a neutral third-party service that holds funds and documents until all conditions of the sale are met, ensuring a secure and fair transaction.


  1. Opening Escrow: When the purchase agreement is signed, an escrow account is opened, and earnest money (a good-faith deposit) is deposited.
  2. Document Collection: The escrow agent collects all necessary documents from both the buyer and the seller, including the purchase agreement, title documents, and loan paperwork.
  3. Funds Management: The escrow agent manages the funds, including the buyer’s down payment and any fees associated with the transaction.
  4. Condition Verification: The escrow agent verifies that all conditions in the purchase agreement are met, including inspections, repairs, and loan approval.
  5. Preparation for Closing: The escrow agent prepares a final settlement statement outlining all costs and ensures all documents are ready for signing.


Purpose: Closing is the final step in the home-buying process where ownership is legally transferred from the seller to the buyer.


  1. Final Walkthrough: The buyer conducts a final walkthrough of the property to ensure it is in the agreed-upon condition.
  2. Signing Documents: Both parties sign the final documents, including the deed, bill of sale, and loan documents.
  3. Settlement Statement Review: The buyer reviews and signs the settlement statement, detailing all financial transactions related to the purchase.
  4. Payment of Closing Costs: The buyer pays closing costs, which can include loan origination fees, title insurance, escrow fees, and property taxes.
  5. Funding: The lender disburses the loan funds to the escrow agent.
  6. Title Transfer: The escrow agent ensures that the seller is paid, the deed is recorded with the county, and the buyer receives the keys to the new home.

B.A.F.E Group's Role

B.A.F.E Group guides you through each step of this process, providing expert advice and ensuring all necessary actions are taken to facilitate a smooth and successful transaction. Our team coordinates with title companies, escrow agents, and lenders to handle any issues promptly and keep the process on track.


Navigating the title insurance, escrow, and closing process can be complex, but with the right guidance and support, it can be managed smoothly and efficiently. B.A.F.E Group is committed to providing you with the information and assistance you need to ensure a seamless home-buying experience.